Seer Press August 19, 2010
Copper prices continue to increase
By Aaron Whyte
Copper is very essential to humans as it provides a good use for various technologies. It is commonly used in wires for an effective electric conductivity. It is also used in sinks and pipes since it is very practical. The copper is maintenance free because it is not susceptible to rusts.
But, the wide use of copper poses a threat as it leads to the depletion of the limited resources. Moreover, the prices of copper have risen in the past few years posing another threat for countries that are still recovering from an economic crisis.
Some people may find the increase in the price of copper as a hidden agenda to satisfy the supplying company’s greed. People would say that the companies responsible for this increase in the prices of copper are Wall Street companies. They have pointed out that Wall Street is imposing high prices on copper because they see copper as a mere commodity. Wall Street has not actually considered a selling product that has copper as the primary material, rather than using copper to sell certain products. But as soon as the companies have lost their interest in making copper a commodity and using it to sell new products, the prices of copper would practically go down.
But it is not necessary that the copper prices have increased due to the moneymaking strategy of some companies. Rather, it is simply a trend that the economy follows since capitalism has started to take its toll in the globe and that is the supply and demand law. It is a fact that the price of copper relies on the density of the supply and the intensity of the demand. If the supply of copper decreases, the prices of copper will simply increase because of the diminishing resources. Also, if the demand of copper increases, the prices increase. This trend creates a more dynamic interaction for the consumers and suppliers so as to maintain a sustainable business and keep satisfied consumers.
Take the case of the American soldiers in Afghanistan and Iraq. The armaments of the U.S. Army are mostly composed of copper. And, the military has supplied the copper-made armaments to the 161,000 soldiers in the battlefield. According to John Pike, director of the Washington military research group Globalsecurity.org, around 6 billion bullets have been used and that is around billions of dollars. And at that time, the price of copper doubled.
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